Critical Analysis: Coeur Mining (NYSE:CDE) and First Majestic Silver Corp. (AG)

Coeur Mining (NYSE: CDE) and First Majestic Silver Corp. (NYSE:AG) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Coeur Mining and First Majestic Silver Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coeur Mining 9.65% 10.44% 5.71%
First Majestic Silver Corp. 5.11% 1.60% 1.18%

Valuation & Earnings

This table compares Coeur Mining and First Majestic Silver Corp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Coeur Mining $714.88 million 1.97 $187.25 million $0.43 18.05
First Majestic Silver Corp. $274.72 million 3.92 $95.14 million $0.09 72.44

Coeur Mining has higher revenue and earnings than First Majestic Silver Corp.. Coeur Mining is trading at a lower price-to-earnings ratio than First Majestic Silver Corp., indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Coeur Mining has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, First Majestic Silver Corp. has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Coeur Mining and First Majestic Silver Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coeur Mining 0 3 5 0 2.63
First Majestic Silver Corp. 0 6 2 0 2.25

Coeur Mining presently has a consensus target price of $11.79, indicating a potential upside of 51.95%. First Majestic Silver Corp. has a consensus target price of $15.25, indicating a potential upside of 133.90%. Given First Majestic Silver Corp.’s higher probable upside, analysts clearly believe First Majestic Silver Corp. is more favorable than Coeur Mining.

Institutional & Insider Ownership

68.1% of Coeur Mining shares are held by institutional investors. Comparatively, 26.5% of First Majestic Silver Corp. shares are held by institutional investors. 1.3% of Coeur Mining shares are held by insiders. Comparatively, 0.9% of First Majestic Silver Corp. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Coeur Mining beats First Majestic Silver Corp. on 11 of the 14 factors compared between the two stocks.

Coeur Mining Company Profile

Coeur Mining, Inc. is a gold and silver producer. The Company has its mines located in the United States, Mexico, and Bolivia and exploration projects in Mexico and Argentina. Its segments include Palmarejo, Rochester, Kensington, Wharf, San Bartolome mines, Coeur Capital and Other. The Palmarejo complex is located in the state of Chihuahua, Mexico. The Rochester mine is located in Pershing County, Nevada, approximately 13 miles northeast of the city of Lovelock. The Kensington underground gold mine and associated milling facilities are located on the east side of the Lynn Canal over 45 miles north-northwest of Juneau, Alaska. The Wharf mine is located in the northern Black Hills of western South Dakota. The San Bartolome silver mine is located on the flanks of the Cerro Rico Mountain bordering the town of Potosi, in the department of Potosi, Bolivia. Coeur Capital segment consists of the Endeavor silver stream. The Other segment includes the La Preciosa project and Joaquin project.

First Majestic Silver Corp. Company Profile

First Majestic Silver Corp. is a mining company. The Company is focused on silver production in Mexico and it is pursuing the development of its existing mineral property assets. The Company operates through eight segments, six of which are located in Mexico; one retail market segment in Canada, and one metal trading segment in Europe. Its segments in Mexico are Santa Elena, La Encantada, La Parrilla, Del Toro, San Martin and La Guitarra. Its segment in Canada is Coins and Bullion Sales, and the segment in Europe is Silver Sales. The Company owns and operates approximately six producing silver mines: the La Encantada Silver Mine, La Parrilla Silver Mine, Del Toro Silver Mine, San Martin Silver Mine, La Guitarra Silver Mine and Santa Elena Silver Mine. The Company’s subsidiaries include First Majestic Plata, S.A. de C.V., Minera El Pilon, S.A. de C.V., Minera La Encantada, S.A. de C.V., Majestic Services, S.A. de C.V., Santa Elena Oro y Plata, S.A. de C.V. and FMS Trading AG.

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